Bond issuers should move away from Reg-S reliance

Repeat borrowers should also access the Rule 144A market as it offers a much broader investor base and competitive price points, says BofA Merrill.

Bond issuers’ bargaining power will improve if they expand their investor base beyond the Reg-S market, which essentially is the market for debt offerings outside the US by both US and foreign issuers, says Bank of America Merrill Lynch. This is notably true for repeat borrowers.

Fixed-income issuers that register under both Reg-S and Rule 144A which allows them to tap the US investor base will benefit, potentially leading to much tighter bond pricings, note...